Investing Basics: How to Protect Yourself With Stop-Loss Orders

Reader Comments
Back to article

because, without them, you may go into complete paralysis in a downturn.
Still, the market is a "jiggy" place on purpose, and by design. A tight stop will usually result in your position being sold out on a daily jiggle. You might also want to try putting in a sell order slightly above your current stock price. The market jigs upwards too.
Most of the time, the stock market is over-valued. AND, most of the time, we rely on irrational exuberance to keep it that way

Muser of NM 3:28PM April 14, 2009